Bitcoin

August 27, 2025 at 22:03

BTC Long Liquidations at $110k Signal Bearish Pressure

Bitcoin showed a clear move against long positions as liquidations hit $117K, with the trigger level around $110,725.10. The burst of long liquidations suggests sellers and shorts gained the upper hand, signaling caution for bulls and potential downside pressure in the near term.

Traders should note that liquidation data can reflect rapid shifts in market mood, but it doesn't guarantee a sustained trend. The price still hovered near a key zone, indicating both risk and opportunity depending on how buyers respond at support levels.

Given this dynamic, it's important to stay disciplined: monitor price action around current supports, watch for a confirmed bounce or breakdown, and be prepared to adjust exposures accordingly rather than chase moves driven by fear or hype.

Analysis

The data point of $117K liquidated long positions, with a noted level at $110,725.10, suggests a shift in momentum away from bulls. Liquidations often accompany sharp price reversals, particularly when long leverage is involved, which can intensify downside moves if buyers fail to defend key supports.

From a technical perspective, traders should assess whether the price holds the $110k area as a floor or if a breakdown opens the door to further losses. If price action shows sustained selling pressure, it increases the likelihood of a deeper retracement to previous consolidation zones or psychological round-number supports.

On the other hand, any resilient intraday bounce above nearby resistance could indicate a temporary relief rally, especially if volume supports a reversal. Risk management becomes crucial in either scenario, emphasizing defined stop levels and clear R/R targets.

Recommendation

1) If you hold long BTC, consider reducing risk exposure or hedging around current levels to protect against a potential pullback.

2) For new entries, wait for a clear bounce and a break above a nearby resistance with solid volume before committing.

3) Set predefined risk controls: stop just below the current support if long, or use a tight stop on shorts to manage potential short-term whipsaws.

Disclaimer

The Analysis and recommendations provided are for informational purposes only. Any investment decisions should be made at your own risk. Past performance is not indicative of future results. Always conduct your own research and consider consulting with a financial advisor before making any investment decisions.